Latham Group (NASDAQ:SWIM) Issues Quarterly Earnings Results

Latham Group (NASDAQ:SWIM) posted its earnings results on Tuesday. The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.02), FiscalAI reports. Latham Group had a net margin of 1.55% and a return on equity of 2.12%. The business had revenue of $117.32 million for the quarter, compared to analysts’ expectations of $118.39 million.

Here are the key takeaways from Latham Group’s conference call:

• Management reaffirmed 2026 guidance with revenue growth of ~9% and adjusted EBITDA growth of ~13% at midpoint, and Q1 showed a 220 bps gross margin expansion to 32% and a 9% increase in adjusted EBITDA.
• The company is accelerating its Sunbelt strategy after seeing double-digit fiberglass pool sales in Florida, adding a commercial organization, neighborhood segmentation, more field sales and targeted marketing to capture share even if U.S. pool starts remain flat.
• The Feb. 26 Freedom Pools acquisition is integrating as expected, is immediately accretive, expands Latham’s presence in Australia/New Zealand (including Perth) and is expected to drive long-term revenue synergies.
• SG&A rose 20% to $37M (driven by strategic investments and acquisition/integration costs), Q1 net loss widened to $9M, and the company expects roughly $9M of Coverstar Central earn-out expense in 2026; leverage and elevated CapEx ($42–48M guidance) increase near-term financial pressure.
• Latham faces input-cost and freight risks from higher oil prices and Middle East tensions but has introduced a temporary fuel surcharge (about 60 basis points headwind this year) and cites supply diversification plus lean/value-engineering programs as mitigants, leaving overall commodity impact uncertain.

Latham Group Trading Down 1.5%

Shares of NASDAQ SWIM traded down $0.09 during midday trading on Thursday, reaching $5.73. 445,673 shares of the stock were exchanged, compared to its average volume of 877,536. The company has a market capitalization of $669.60 million, a P/E ratio of 81.93, a P/E/G ratio of 2.51 and a beta of 1.72. Latham Group has a 52-week low of $5.04 and a 52-week high of $8.97. The company has a current ratio of 2.77, a quick ratio of 1.82 and a debt-to-equity ratio of 0.68. The stock has a 50 day moving average price of $5.97 and a 200-day moving average price of $6.47.

Institutional Investors Weigh In On Latham Group

A number of hedge funds and other institutional investors have recently modified their holdings of the company. nVerses Capital LLC purchased a new stake in shares of Latham Group during the fourth quarter worth about $97,000. Wellington Management Group LLP grew its holdings in shares of Latham Group by 216.4% during the fourth quarter. Wellington Management Group LLP now owns 6,749,349 shares of the company’s stock worth $42,858,000 after buying an additional 4,616,367 shares in the last quarter. Tudor Investment Corp ET AL acquired a new stake in shares of Latham Group in the fourth quarter worth approximately $207,000. Millennium Management LLC boosted its position in shares of Latham Group by 124.0% in the fourth quarter. Millennium Management LLC now owns 151,710 shares of the company’s stock worth $963,000 after acquiring an additional 83,990 shares during the last quarter. Finally, Man Group plc acquired a new stake in shares of Latham Group in the fourth quarter worth approximately $118,000. 83.95% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

SWIM has been the subject of several recent research reports. Wall Street Zen downgraded shares of Latham Group from a “buy” rating to a “hold” rating in a report on Sunday, April 12th. Zacks Research downgraded shares of Latham Group from a “strong-buy” rating to a “hold” rating in a report on Friday, April 3rd. The Goldman Sachs Group restated a “sell” rating on shares of Latham Group in a report on Wednesday. William Blair restated an “outperform” rating on shares of Latham Group in a report on Wednesday, March 4th. Finally, Barclays lowered their price target on shares of Latham Group from $8.00 to $7.00 and set an “equal weight” rating for the company in a report on Wednesday, April 8th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Latham Group has a consensus rating of “Reduce” and a consensus target price of $6.75.

Latham Group Company Profile

Latham Group, Inc designs, manufactures and supplies a broad range of aquatic products and services for residential and commercial applications. Offerings include fiberglass and vinyl-liner pool shells, commercial water park structures, water slides, surf simulators, pumps, filters, heaters and sanitation systems. The company also provides parts, equipment and technical support for pool installation, maintenance and repair.

Operating across three core segments—commercial, residential and aftermarket—Latham delivers turnkey aquatic facilities and attractions for municipal, hospitality and resort clients, offers packaged pool kits and equipment packages to builders and dealers, and supplies replacement parts, service contracts and technical assistance to support ongoing pool operations.

Headquartered in the United States, Latham Group maintains manufacturing and distribution centers throughout North America and Europe.